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Household spending on housing increases 7 percent

More than a third of families’ spending in Bermuda is now going on housing — nearly double that of the US.

Mainly due to rent increases, households spent more than $740 million on housing in 2005, a rise of seven percent on the previous year’s figure of $694 million.

Statistics show 34 percent of household consumption went on housing — dwarfing the amount spent on education (4 percent), clothing (3 percent), healthcare (5 percent) and food and drink (14 percent).

The corresponding figure for housing in America is just 18 percent.

Critics yesterday said the data, from Government’s Quarterly Bulletin of Statistics, underlines claims that not enough has been done to provide affordable housing on the Island.

Sheelagh Cooper, Coalition for Protection of Children chairman and Habitat for Humanity board member, said many families were struggling to cope with increasing rents.

“This news doesn’t surprise me at all,” said Mrs. Cooper. “The proportion of people’s income that is being spent on housing has been rising for the last ten years.

“It shows no sign of stopping. The rising rent is a reflection of Bermudians who are overcharging their own people. It hits the bottom third of society very hard.

“We have as many as one third of black Bermudian families living in small dwellings completely inadequate for their needs, unable to afford even the more basic rent.

“When people spend so much money on rent, they can’t buy nutritious food.

“Many women go to prison because they fall so far behind in their rent they end up being taken to court by debt collection companies.”

Government has faced repeated criticism over the low number of affordable homes projects it has delivered.

Schemes completed in recent months include Anchorage Villa and Butterfield Lane, which brought a total of 28 units, but United Bermuda Party MP Jon Brunson last night said more needed to be done.

Reacting to the statistics in the absence of Shadow Housing Minister Kim Swan, who is off the Island, Mr. Brunson said: “It is not a surprising statistic. It has been building for years.

“The housing costs being borne by working class Bermudians are unacceptable and stand as an indictment of the PLP Government. It leaves no room for young Bermudians to get their piece of the rock.

“This is a fundamental problem that has only got worse since the PLP came to power.

“It is even more unacceptable when one considers that PLP policy was to limit housing costs to 25 percent of household income. They’ve given Bermudians no reason to believe they can ease the situation. They’ve never done it and, on the basis of what we’ve seen, they never will.”The only real success that this Government can claim is that they’ve presided over a construction boom of high-end condominiums that are only in reach of high-end earners, not working class and young Bermudians.”

Schemes underway or in the pipeline include the delayed 100-unit Harbour View Village lottery-winner project at Southside, the 38-unit Perimeter Lane development, the 54-unit Westcott Road project at Southside, the 24-unit Ewing Street mixed use development and the 100-unit affordable housing complex at Ireland Island.

The Government report shows that overall household spending was up 7 percent to $2.4 billion in 2005. Most major components increased with the notable exception of clothing, accessories and footwear, which declined by more than 10 percent.

Factors contributing to the rise include growing employment earnings and prices, according to the report.

The Royal Gazette contacted Housing Minister David Burch for a comment but received no reply by press time.

Household expenditure on housing rises seven percent